Recent headlines suggest that ESG – Environmental, Social, and Governance – may be losing traction in the U.S., fueling the notion of ‘ESG Fatigue’, as critics dismiss it as little more than a passing trend. Yet again, perception differs from reality.

While the public discourse on ESG appears to be waning, sustainability regulations are quietly, yet forcefully, tightening their grip on businesses. U.S.-domiciled companies, even those that have historically operated outside the scope of such mandates, now face new and robust reporting obligations.

California’s groundbreaking SB 253 and SB 261 laws, coupled with the EU’s Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDD), are reshaping compliance requirements. This growing wave of regulations is pushing companies to act decisively to avoid non-compliance risks and financial penalties. Far from fading, the ESG era is evolving into a period of mandated action, technical proficiency, and data overload.

Key Sustainability Mandates for U.S. Companies: Reporting Requirements and Deadlines

Understanding who is required to report and when can often be as challenging as deciphering the disclosure requirements themselves. The table below summarizes the key details of some of these sustainability mandates as they apply to U.S.-domiciled companies.

Act Now: How to Prepare for Upcoming Sustainability Regulations

The shift in sustainability regulations highlights the need for companies to proactively prepare. Compliance requires a deep understanding of obligations, robust data management systems and cross-functional collaboration. While all these efforts require time and resources, starting early and working with a knowledgeable consultant can lighten the burden on internal teams and ensure smooth compliance.

Steps to Sustainability Compliance 

1.) Understand Obligations and Appoint Responsibilities

• Identify which regulations apply to your organization.
• Designate a compliance officer or cross-functional team to oversee reporting and due diligence efforts.

2.) Assess Gaps

• Conduct a gap analysis to evaluate current data collection, reporting, and supply chain practices against regulatory requirements.

3.) Develop a Plan of Action

• Create a roadmap for compliance, prioritizing high-risk areas and setting clear timelines.
• Establish processes for data collection, reporting, and assurance.

4.) Implement

• Deploy technology and resources to capture accurate data on GHG emissions, supply chain risks, and other sustainability metrics.
• Train relevant teams on compliance protocols and ensure ongoing monitoring and improvement.

Smart companies understand that preparing now is the key to avoiding last-minute compliance scrambles. Early action ensures companies stay efficient, compliant, and focused – because the cost of waiting is always higher.